"You've Called The Right Show And The Wrong Show"

Summary

Podcast Summary: "You've Called The Right Show And The Wrong Show"

Podcast Information:

• Title: The Ramsey Show Highlights
• Host/Author: Ramsey Network
• Episode: "You've Called The Right Show And The Wrong Show"
• Release Date: April 18, 2025
• Description: The Ramsey Show Highlights offers a quick, daily dose of advice on life and money in under ten minutes. Featuring experts like Dave Ramsey, Ken Coleman, Rachel Cruze, Dr. John Delony, George Kamel, and Jade Warshaw, this podcast delivers insightful financial guidance seven days a week.

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1. Introduction and Caller’s Financial Background

The episode begins with Dave Ramsey addressing a call from a 26-year-old homeowner who is financially stable with minimal debt. The caller provides a snapshot of his financial journey:

• Caller’s Situation:
  • Owns a paid-off house.
  • Minimal to no debt for himself and his fiancé.
  • Previously engaged in options trading for five years without success.
  • Recent trading efforts with an initial investment of $660 growing to $4,800 before dropping to $200.
  • Employed part-time, earning approximately $85,000 annually across 48 hours a week.

Notable Quote:

Caller [00:06]: "I started about four or five weeks ago with $660 and my account is now sitting at $4,800 and $200. So I don't know if I should continue with the strategy that I'm using of trading options or do I move to a different strategy."

2. Dave Ramsey’s Initial Response to Day Trading

Dave Ramsey responds candidly, indicating that while the caller has reached out to the right show, it might not be the optimal place for day trading advice.

Notable Quote:

Dave Ramsey [01:05]: "You're not going to like what I tell you to do and you probably won't do it. I would tell you to stop day trading immediately and focus on long term wealth building through your normal day job income."

3. Interruption by George Kamel – Knockbox Advertisement

Shortly after Ramsey's initial advice, George Kamel interrupts with a promotion for Knockbox, a service that organizes financial accounts and estate plans to ensure families can easily access important information in case of an emergency.

Notable Quote:

George Kamel [01:11]: "Knockbox solves that. It's a kit that organizes your financial accounts, estate plans and everything your family would need all in one place."

4. Deep Dive into the Risks of Day Trading

Resuming the conversation, Ramsey elaborates on the dangers of day trading, emphasizing statistics and personal anecdotes to highlight the high failure rate among day traders.

• Key Points:
  • High Failure Rate: "97% of day traders who persisted for more than 300 days lost money."
  • Emotional and Financial Risks: Day trading leads to significant stress, anxiety, and potential debt due to leveraging.
  • Long-Term Investment Strategy: Ramsey advocates for investing in retirement plans and index funds rather than short-term trading.

Notable Quote:

Dave Ramsey [02:38]: "It's easy to feel like you're the exception when you're winning... It's just gambling at the end of the day."

5. Ramsey’s Investment Philosophy

Ramsey outlines his preferred investment strategy, focusing on long-term growth and compound interest rather than attempting to time the market.

• Investment Strategies Recommended:
  • Retirement Plans: Emphasizing the importance of consistent, long-term investments.
  • Index Funds and Taxable Brokerage Accounts: Preferred over single stocks or volatile investments like cryptocurrencies.

Notable Quote:

Dave Ramsey [03:11]: "The easiest way to avoid that is to not gamble it. And so what I do is I invest into retirement plans."

6. Brief Segment on the Crypto Bar in New York City

George Kamel returns to discuss a trending topic—a new crypto bar in New York City—prompting a light-hearted exchange between him and Ramsey.

Notable Quotes:

George Kamel [05:02]: "There is now there is a crypto bar in New York City."

Dave Ramsey [05:15]: "It's the worst place to meet a woman because you won't find one in there."

7. Conclusion and Final Thoughts

As the episode wraps up, Ramsey reiterates the importance of financial peace and encourages listeners to adopt sustainable investment strategies over risky ventures like day trading.

Notable Quote:

Dave Ramsey [04:12]: "Our plan is all about peace. You've heard it. Financial peace."

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Key Takeaways:

• Avoid High-Risk Trading: Ramsey strongly advises against day trading due to its high failure rate and emotional toll.
• Focus on Long-Term Investments: Emphasizing retirement plans and index funds as safer, more reliable investment avenues.
• Financial Organization: Highlighting services like Knockbox to help organize and safeguard financial information for families.
• Maintaining Financial Peace: Advocating for strategies that reduce stress and promote long-term financial stability.

This episode serves as a cautionary tale against the allure of day trading, promoting disciplined, long-term investment strategies to achieve financial security and peace.

Transcript

[Dave Ramsey]

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[Caller]

So I'm 26. I have a house that's paid off. Me and my fiance have minimal to no debt, probably the maximum we have. I have around 1100. She has around like 14 to 1500 dollars in debt. I started trading options about 5 years ago. Wasn't successful. Sort of sat down for the past two years, three years researching, studying markets. You guys are king of investing. So I wanted to get your advice on it. I started about four or five weeks ago with $660 and my account is now sitting at $4,800 and $200. So I don't know if I should continue with the strategy that I'm using of trading options or do I move to a different strategy.

[Dave Ramsey]

Well, you've called the right show and the wrong show. You're not going to like what I tell you to do and you probably won't do it. I would tell you to stop day trading immediately and focus on long term wealth building through your normal day job income. Hey, George here. With a quick interruption. If something were to happen to you tomorrow, would your family know where to find your life insurance policy, your will will, even your Netflix password? Well, Knockbox solves that. It's a kit that organizes your financial accounts, estate plans and everything your family would need all in one place. That way they don't have to hack into your laptop or locate some long lost thumb drive. So leave them a legacy, not a scavenger hunt. With Knockbox. Ramsey fans get the best Discount [e-mail] Ramsey that's knockbox.com Ramsey. Do you have a normal day job?

[Caller]

Yeah. So that's actually what got me back into trading because I started this current position I'm at, I work for 12 a week, so it gives me two to three days to day trade. I'm currently making 42, 35 an hour, I believe it is, or 3240.

[Dave Ramsey]

Okay, so you're making about 85 grand a year. If you're doing that 40 hours a week. You said you're doing 48 hours a week, so it's probably a little more than that, correct?

[Caller]

Yeah.

[Dave Ramsey]

Okay. And what makes you go, I need more. Clearly you're enjoying doing this and you haven't been burned by it yet, correct? Okay, let me tell you that.

[Caller]

No, I, I have been burned the first two years. I want to say I've lost close to four to $5,000 within the first two years.

[Dave Ramsey]

Okay, so here's the stat and you fell perfectly into it. 97% of day traders who persisted for more than 300 days lost money. And many people go borrow money to make trades, going into debt to leverage. Right. And we've taken some gut wrenching calls in the Ramsey show from people who have lost 30 grand, 150 grand, even $300,000 by day trading. And it breaks my heart. And here's the problem. It's easy to feel like you're the exception when you're winning.

[Caller]

Correct.

[Dave Ramsey]

And it's easy to go, well, it's always going to be, I'm good at this. It's just gambling at the end of the day. And if you do your research, it's just researched gambling, which still has a lot of risk. And I'm with Dave Ramsey on this. I just hate losing money. And so the easiest way to avoid that is to not gamble it. And so what I do is I invest into retirement plans. If I want to invest outside of that, I would invest into an index fund and a taxable brokerage account and call it a day. And so I would focus on. Yeah, because I don't. Here's the problem. You're spending hours and hours of week staring at these screens trying to time the market. And instead the better thing to do is instead of timing the market is just have time in the market through compound growth and a long term strategy. This is the tortoise beats the hare. You've heard that.

[Caller]

I've heard that. I've also heard the whole gambling. It's short money gains. Don't get into it. You might win now, but you're gonna lose it all later.

[Dave Ramsey]

Yeah. And I don't think it's worth the mental calories. I don't think it's worth the stress, the anxiety, the risk. Our plan is all about peace. You've heard it. Financial peace. And so can I tell you how many times I've thought about my investments over the last six months? Zero. I go up, market's down. All right, I'm gonna go get a coffee. I just don't care because I'm investing for the long term. And if you're investing for a shorter term purchase, like real estate, just park it in an index fund, let it ride. That's what Dave does. And when he finds a good piece of property, he'll cash out enough to buy the property. But I would never encourage anyone to do single stocks or even a single crypto coin. And day trading falls squarely in that with even more, because now it's a whole career you can make out of it of saying, I'm a day trader. And so, you know, I heard this. You're too smart to do this stuff.

[George Kamel]

You know, I heard on the news this morning. Got to get your quick take on it.

[Dave Ramsey]

What's that?

[George Kamel]

There is now there is a crypto bar in New York City.

[Dave Ramsey]

Oh, I have heard about this.

[George Kamel]

Have you heard this?

[Dave Ramsey]

Yeah.

[George Kamel]

And I was thinking of you. I heard it. I was like, I wonder if George knows about this.

[Dave Ramsey]

So I guess I'll tell you. It's the worst place to meet a woman because you won't find one in there.

[George Kamel]

Yeah.

[Dave Ramsey]

And if you just want to hang out with other people.

[George Kamel]

Yeah. Stuart Varney was asking. This was on Fox Businesses too. Varney was asking the, the, his female co host who was talking about it. He's like, can you pay for your beer with crypto? And she's like, yeah. And she's like, you wouldn't know how to do it, you know. So I guess Stuart is, is not jumped on the crypto train, but very interesting.

[Dave Ramsey]

Yeah. A crypto bar. I've got a dark curiosity.

[George Kamel]

She said it's full of crypto enthusiasts.

[Dave Ramsey]

Oh, wow.

[George Kamel]

So there you go. So my point is, next time you're in New York doing media, I think you should buy do that for Tick Tock and Instagram. Just do a little drop in.

[Dave Ramsey]

Just see if anyone starts filming me saying I saw George at a crypto bar. Yeah.

[George Kamel]

Yeah. That could be fun.

[Dave Ramsey]

No, thank you.

[George Kamel]

All right.

[Dave Ramsey]

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